Understanding the relationship between price and volume in one article: so you won't "buy high and sell low" anymore.
Trading volume represents divergence.
The essence of trading volume is the divergence between bulls and bears.
There are transactions only when there are buyers and sellers. The greater the divergence, the larger the transaction volume.
The key question is, who had a disagreement with whom?
If there is a significant increase in volume after a consecutive rise, but the price hardly increases, it may indicate that large funds are exiting.
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Understanding the relationship between price and volume in one article: so you won't "buy high and sell low" anymore.
Trading volume represents divergence.
The essence of trading volume is the divergence between bulls and bears.
There are transactions only when there are buyers and sellers. The greater the divergence, the larger the transaction volume.
The key question is, who had a disagreement with whom?
If there is a significant increase in volume after a consecutive rise, but the price hardly increases, it may indicate that large funds are exiting.